One of the hot topics these days discussed in the Debt Collection industry is undoubtedly the digitalisation and automation of recovery processes. But is the time right and what does it mean? Looking at the industry and talking with our customers, we observed 3 top reasons for the digitalisation trend in debt collection:
1. Customer retention: Digital payments empower the consumer.
2. Cost saving: Digital debt collection is cheaper.
3. New innovations in Fintech make it possible now.
Nobody likes to owe money and feels uncomfortable knowing that they do. Being chased by debt collection agencies does not improve the situation. Digital Debt Collection enables consumers to self-manage payments and resolves their debts on their own before agents call.
We found that consumers prefer communication via SMS, Email or IVR with a link to pay online to a call from an agent. Our customers have seen a significant increase of retention rate since they use a digital debt collection technology.
Companies who manage high debt volumes are looking for ways to collect debt faster and cheaper, and thus reducing internal costs significantly.
Our customers have reported a cost reduction of up to 10% after redefining their internal business processes and incorporating automated debt notification channels such as SMS, Email or IVR.
New consumer friendly and secure omnichannel payment gateways are created, new innovations are being discovered and incorporated into Fintech solutions such as AI, Machine learning and Chatbots.
» Increased collections rate.
» Increased the amount of early collections.
» Reduced collections time: customers in collections do not generate new revenue.
» Decreased collections costs.
» Improved customer experience along the collections process (measured through NPS).
» Mitigated churn.
» Protected brand reputation.
You can find more information about our own Digital Debt Collection Technology ‘IM CollectionsSuite’ here.
If you want to find out how Digital Collection can help your organisation we are more than happy to speak with you. Please get in touch and/ or book a demo via our contact form.